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11/29/2011 2:24PM

Amazon, B&N Forego Profit for Tablet Share

With their low-priced tablet options, it's clear that Amazon and Barnes & Noble are hoping the devices spur increased media consumption and - especially in the case of Amazon - overall boost to e-commerce sales, given how tightly wired Prime is into the device. Will their strategy work?

This transcript has been automatically generated and may not be 100% accurate.

I ... well Amazon ... they bought the tablets into the sputtering sales of other stuff Dan Gallagher joins us now from MarketWatch and Sanford's as go to tells ... all about it since I watched this tablets it's the stuff they can bite through the business ... unions I Amazon Barnes Noble are very different from other companies so far been in this basin which ... Gill those other companies like Apple and Motorola and and Samsung ... BD to generate strong margins on the hard work self ... for Amazon and Barnes and Noble for not so much concern about making big profits of a hard worker trying to draw ... on use these tablets to spur more consumption media sales and e-commerce sales ... and Dr Dre that what way ... at the ticket that back in the reason why we're discussing this it is because they didn't turn officer at Isley yesterday ... about what what's expected of us the Amazon Kindle Fire tablet in terms of unit sales on its really no pun intended catching on fire ... and what are some of those expectations that analysts have right now for the banks ... but you know what she the numbers I've seen have been around in the fortified million mark in terms of ... on you know with total next year there's lot of people and think they can actually sell ... a few million just in this in what remains of the fourth quarter and it's ... on it's actually quite ambitious cuz we're talking about a six week period from when the Kindle Fire went on sale ... to the end of the Puerto sort of move a few million devices in that period ... aam looks ambitious but from what Amazon said yesterday it would offer number on it ... but it was suggested that there probably given me that the D C but no we know we are really know to never report actual units it's not as we can believe what we want try to come up with and context of about thirteen ... million eye pads are expected to sell during mass ... on the holiday quarter according to an analyst with Piper Jaffray so ... that I pad stills weekend and that that ... it is in our opinion respects the Kindle Fire Over TTI and terms of total volume at least ... I'm not in the near term while what the tablet is expected to do though ... is to become the strongest only alternative to the I pad that the market seen ... so far in what's been out there is not really need much the debt the body of a playbook the ... HP TouchPad some these other devices and just kind of soul ... really ... more Jerome large numbers so looks like the Kindle Fire is gonna be that one that that strong Number two ... by at least for now whether overtake site at long-term possibly we don't really know ... but near-term is probably can be the strongest alternate ... Laura and a prolonged time you want the AIPAC am I don't want whatever reason ... a now going to go with the Kindle Fire the things that I made it tempting you are you still got his sights set on the I pad to lower average and that's that's tough to say at the moment the prize actually that had expected ... sales for the eye pattern are so much greater than some might be painful right now simply because the price play meaning that says that despite the fact that the economy is weighing on consumer spending and Avici knowing ... that twenty people are willing to spend hundreds of dollars on these devices ... what should I be thinking very very attractive price hike for consumers say over the past couple weeks is one but not Weitzman Turner dollars in the Kindle Fire tablet because then I can also ... get a couple other things I need to get or give other gifts as well as holiday season ... rather than certain just spend everything and I'm more expensive device on ... and though ... it means a very low margin or no margin I am for coffee like Amazon sedan and wondering whether or not you think that long-term that strategy on in terms of driving India consumptionist is really going to pan out or Hauenstein pan out ... a durable do some question about it there the Kindle is shown that the O'Boyle that I use does work ... on Amazon as it said over the year is how much the Kindle has spurred ... of book buyers to find more books than they used to buying otherwise before they have the divine it's ... so they're there is some basis for believing that having a device that city kids media consumption ... will spur sales of that new consumption ... The over this the tablet were talking about different types and the ravages e books ... so there's there's some unknown element here but that the the dating indicates show for it that ... um that it will spur the PA Sport the sales ... by how much don't want to battle the war with Amazon Orwall I may take some time to panic ... it's getting into it this is right that he got a product out there that he is ... a good number two on because it seemed that nothing was witty coming close for awhile that ... that the Galaxy ... Tab land was sort of look that is good but I haven't that expensive right this is one ... one is this like some of its gonna be on hand and the Kindle Fire and then everybody else's RM twenty two thanks Thor ... I'm afraid an honest I realized that if you're not getting the focus she has ... I think it's pretty much that this could be the case in the main the main advantage the Kindle Fire does have its price point it's coming out ... on you know what's in half the iPads ... on most euro tablets have made a run on this market right to go pretty much of the same price point is Apollon when you're going against Apple it's very hard to compete ... when you're at the same price much or devices do and some of the that their device doesn't which have been the case ... OK thank you Brian much bang Delano with MarketWatch Aoun ... Sanford's as go